During a visit to Stoke-on-Trent on 25 March, the Chancellor and Deputy Prime Minister announced a £2 billion injection of investment for affordable homes to deliver the Prime Minister’s Plan for Change.

The chancellor said the latest funding top-up will deliver 18,000 new homes for affordable tenures with the schemes due to complete by the end of the parliament, thereby contributing to the government’s 1.5m homes target.

The £2bn will be available on the same terms as the 2021-2026 Affordable Homes Programme, but providers will have until March 2027 to start construction on the homes.

The government said the funding is intended to be a “down payment” or “bridge” between the current £11.5bn 2021-2026 programme and a new grant funding scheme, the details of which are due to be announced on 11 June in the spending review.

The latest £2bn funding follows two top-ups to the current AHP programme, of £500m and £300m announced over the past few months.

Reeves, chancellor of the exchequer, said:

“We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.”

Reacting to the announcement Gavin Smart, chief executive of the Chartered Institute of Housing, said:

“This investment signals recognition from government that bold action is needed to boost supply and ensure that everyone has access to a decent, safe, and secure home. It is vital that it forms part of a longer-term, strategic approach to delivering the scale of truly affordable social rented housing needed. We are very pleased that the government sees this new funding as a “down payment” ahead of more long term investment later in the year.”

Commenting on the announcement, Cambridgeshire ACRE’s Chief Executive, Hayley Neal said:

“Whilst we will always welcome additional money being directed towards the provision of more affordable homes, if the government’s ambitious housing strategy is to be delivered, then the housing sector will need significant, long-term sustainable funding when details of the new Affordable Homes Programme are released as part of the Spending Review in June.”